Explosion Rocks Freeport LNG Export Plant – Offline for 3 Weeks

The second-largest LNG export terminal in the U.S., Freeport LNG located near Galveston, Texas, experienced an explosion and fire yesterday. Thankfully nobody was injured and it did not take long to extinguish the fire (see video below). However, the incident has, according to Freeport officials, taken the plant offline for "at least three weeks." Freeport liquefies and exports approximately 2 Bcf (billion cubic feet) each and every day. In May the U.S. liquefied and exported 11.6 Bcf/d, ergo the Freeport outage takes ~17% of our exports offline. That news sent the Henry Hub NYMEX futures price plunging by 59 cents. At least one, possibly more Marcellus/Utica drillers sell molecules to the Freeport facility.

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